AO Smith Corp.
) reached a new 52-week high of $55.18 during its trading session
on Nov 26. This denotes an increase over the previous high of
$54.77 reached on Nov 15.
SMITH (AO) CORP (AOS): Free Stock Analysis
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REXNORD CORP (RXN): Free Stock Analysis
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AO Smith closed the trading day on Nov 26 at $54.88, reflecting a
solid year-to-date return of 71.8%. The trading volume for the
session was 0.42 million shares. Further upside potential exists
for this Zacks Rank #1 (Strong Buy) industrial electrical
equipment maker, as can be deduced from its projected earnings
growth rate of 26.0% for the next five years and 34.9% for the
AO Smith reported impressive financial results for the third
quarter of 2013. Adjusted earnings per share came in at 54 cents,
up 45.9% over the year-ago quarter and roughly 22.7% above the
Zacks Consensus Estimate of 44 cents. Shares have risen by 9.3%
since the earnings release on Oct 21.
Revenue increased by 16.0% year over year on the back of 10.2%
increase in revenue generated from North America and 30.9% from
the Rest of World segments. Residential and commercial water
heaters and commercial boilers sold in North America increased
while product sales in China and demand for premium water heating
and water treatment products were strong in the quarter.
For 2013, management of AO Smith anticipates adjusted earnings
per share to be within the $2.00-$2.04 range versus $1.84-$1.90
Also, AO Smith had positive earnings surprises in all the
trailing four quarters, with the average being 20.6%.
Estimate Revisions Show Potency
Over the last 60 days, the Zacks Consensus Estimate for AO Smith
has increased by 5.7% to $2.04 for 2013 and by 6.0% to $2.29 for
2014. This represents year-over-year growth of 34.9% for 2013 and
11.8% for 2014.
AO Smith currently has a market capitalization of $5.0 billion
and carries a Zacks Rank #1 (Strong Buy). Some other stocks worth
considering in the industrial electrical equipment industry
JinkoSolar Holding Co., Ltd.
). While EnerSys also holds a Zacks Rank #1 (Strong Buy), Rexnord
and JinkoSolar carry a Zacks Rank #2 (Buy).